N.H. Governor Comes Out Against Broad Tax for Schools

Gov. Steven Merrill of New Hampshire last week presented an
impassioned argument for why the Granite State should not enact a
broad-based tax to finance education--despite pressure from the
courts.

The week before Mr. Merrill's State of the State Address, the New
Hampshire State Supreme Court ruled unanimously that the state is
obligated to fund public education, striking down an earlier decision
in a school-finance lawsuit filed by five property-poor districts in
1991.

New Hampshire currently ranks last among the 50 states in the
percentage of funds it provides to public schools, with state aid
bearing only about 7 percent of the total cost of education.

State education leaders suggested that the court's decision is
likely to lead to adoption of a sales or income tax. New Hampshire is
the only state that does not levy either kind of tax.

But in his speech, Mr. Merrill pledged firmly to fight any effort to
enact such a tax.

Mr. Merrill warned that the lawsuit "threatens to shake the social
and economic foundations of this state.''

Asserting that low taxes play a key role in attracting new
businesses and residents to the state, the Governor described New
Hampshire as "an island of sanity in a sea of taxes, rising costs, and
red tape,'' and referred to its absence of broad-based taxes as "the
New Hampshire advantage.''

"There are some who believe that education quality is determined by
the amount of state funding and state control,'' he said.

"I believe they are wrong,'' the Governor continued, citing the
performance of New Hampshire students on the S.A.T. and the National
Assessment of Educational Progress as evidence of the high quality of
the state's schools.

"Ultimately, this is not a question of funding or the fairness in
funding,'' Mr. Merrill said. "This is a question of more funding.''

Earlier this month, Rep. Douglas E. Hall, a Republican, introduced a
measure that would end the use of property taxes to finance education
after Dec. 31, 1996, and also create a panel to devise a new tax system
to support public schools.

But Jim Van Duggan, a spokesman for the House of Representatives,
has said no legislation restructuring the tax system is likely to pass
before 1995 or 1996 and, given the state's historical resistance to
raising taxes, may not occur even by then.

ILLINOIS

Edgar Backs Privatization And Charter Schools

Gov. Jim Edgar, facing his final legislative session before a
re-election challenge, last week told lawmakers that it is time to
experiment with private management of some Illinois schools and that he
plans to introduce a bill that would create 12 charter schools in an
effort to test new management approaches.

"Some reforms will work; others may not,'' the Republican Governor
said in a speech that highlighted job gains in Illinois during his
first term. "But we're not going to know the answers unless we
try.''

In an effort to bolster the state's workforce, the Governor said
last week that he will appoint a school-to-work task force led by
Lieut. Gov. Bob Kustra to build on a student-apprenticeship program
launched last year.

The Governor also said he plans to convene a group to study
education-technology issues and reminded lawmakers and voters that he
strived to protect school funding during recent years when the state
faced tough budgets.

Mr. Edgar also reminded officials that an earlier blue-ribbon
commission looking at "true'' school reforms would deliver its
recommendations in the weeks ahead.

Gov. Kirk Fordice of Mississippi proposed a "local-option, public
school choice'' plan in his State of the State Address earlier this
month, as well as a performance-based pay system for teachers that
would condition admission to its top pay tier on obtaining
certification from the National Board for Professional Teaching
Standards.

Under the choice plan, which would allow every district and county
in the state to conduct a referendum on school choice, the Governor
said, "our local communities can be empowered to positively change
their own schools if they so desire.''

In his speech, Mr. Fordice cited a poll finding that 85 percent of
state residents support school choice.

"It is my belief that this one measure will be the greatest single
event to happen to Mississippi education in decades,'' he said.
"Allowing local-option public school choice will set the wheels in
motion for some of the most dramatic, positive change to our schools we
have ever seen.''

Only Oklahoma has formally adopted a merit-pay plan tied to
certification by the N.B.P.T.S., according to Joanne Kogan, a
spokeswoman for the board.

But she said that at least five other states are engaged in "serious
discussions'' about what incentives should be used to encourage
teachers to become board certified.

New Mexico is considering a plan to pay the cost of board
certification--$975--for the first 100 teachers who apply in the
1994-95 year.

In addition to the performance-pay plan, Governor Fordice has also
proposed establishing an "expert citizen-teacher'' credentialing
program. Under the program, professional and technical employees in the
private sector could obtain one-year provisional teaching certification
without an education degree.
--MEG SOMMERFELD

SOUTH DAKOTA

Miller Proposes Eliminating Categorical Education Aid

In his first State of the State Address last week, Gov. Walter Dale
Miller of South Dakota proposed eliminating almost all categorical
state aid, and instead distributing the funds through South Dakota's
general education-funding formula.

"I believe that, although the state-aid formula is not perfect, it
is the most equitable way we have to distribute money to schools,''
Governor Miller said.

The Governor also announced the appointment of a commission to study
the education-aid formula.

Mr. Miller will serve as chairman of the commission, which will also
include representatives of teachers' and parent-teacher organizations,
the majority leaders of the House and Senate, and a parent representing
the interests of special-education students.
--SARA SKLAROFF

WASHINGTON

Lowry Turns Spotlight On Youth-Violence Initiative

Governor Mike Lowry of Washington last week touted a $13.2 million
package of programs designed to reduce violence in and around schools,
provide families with coordinated social services, and train and employ
teenagers in danger of dropping out or committing crimes.

In his State of the State Address, Mr. Lowry said that his "youth
agenda'' would not merely increase state spending on the problems
facing children, but would reorganize the delivery of key services for
families and youths.

He said such services should become more localized in order to reach
more of the state's neediest residents.

The proposal also includes new models for teaching conflict
resolution, and stiffer penalties for young violent offenders who
possess or use handguns and for the adults who provide the weapons.

Pieces of the proposal--which was developed by educators,
social-service workers, law-enforcement officials, and representatives
of youth groups--are expected to be reviewed in legislative committees
this session, according to Clarence Moriwaki, a spokesman for the
Governor.

Funding for the effort is expected to come from the state's
general-fund revenues, he added.

However, the Governor announced in the address that he has proposed
a supplemental budget intended to lower general-fund spending by $93
million and cut overall state funding by about $150 million. The total
1994 state budget is slightly more than $8 billion.
--JOANNA RICHARDSON

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